underapplied overhead Definition | Business Dictionaries from AllBusiness.com
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Business Glossary


Business Definition for: underapplied overhead
underapplied overhead

amount by which the factory overhead added to work-in-process inventory at a predetermined overhead rate (and credited to factory overhead applied) is less than the actual overhead shown in factory overhead control.

See also overapplied overhead , predetermined overhead rate
underapplied overhead

in cost accounting, situation where an insufficient amount of factory overhead was charged to the products manufactured.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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